Automatic ordering method and system for trading of stock, bond, item, future index, option, index current and so on

ABSTRACT

The present invention relates to an automatic ordering method and system for trading of stocks, bonds, items, futures, options, indexes, foreign currencies through data communication network, and more particularly to an automatic ordering method and system by computer according to certain conditions predetermined by an investor wherein the automatic ordering method for trading of stocks, bonds, items, futures, options, indexes, foreign currencies and the like through data communication network according to the present invention comprises the steps of: determining a trade-desired object in a computer system to input automatic trade conditions containing purchase and selling conditions; ordering purchase and selling according to the trade conditions through the data communication network; discriminating whether the purchase order and/or selling order has been contracted through the data communication network; and placing new purchase and/or selling orders through the data communication network according to the trade conditions predetermined by the computer when either the purchase order or the selling order is contracted.

[0001] This application is a continuation of U.S. patent applicationSer. No. 09/509,326 filed Mar. 24, 2000, which is herein incorporated byreference in its entirety.

BACKGROUDN OF THE INVENTION Field of the Invention

[0002] The present invention relates to an automatic ordering method andsystem for trading of stocks, bonds, items, futures, options, indexes,foreign currencies through data communication network, and moreparticularly to an automatic ordering method and system by way ofcomputer according to a predetermined condition set by an investor.

[0003] Known are the method and system for trading articles such asstocks, foreign exchanges, cereals, ores, futures and the like. In theconventional method and system, an investor inputs into a computerdesired purchase (or selling) price and desired purchase (or selling)quantity of certain articles, securities, foreign exchanges or indexesto generate a trade order and to conclude a trade. In this regard, trademethod of articles, foreign currency exchanges, securities, indexes andthe like through a computer network is the same as the current stocktrade method through a computer network, such that the present inventionwill be described hereinafter with reference to a stock trade by way ofexample.

[0004] With reference to the stock trade as an example, the presentinvention relates to a method and a system, where a user pre-set a tradecondition for purchase or selling order for a particular stock, and acomputer places an automatic purchase or selling order according to thetrade condition.

[0005] It has been a general practice for a stock holder to directlyorder a selling or buying of a stock at a securities company or tocommission an employee at a securities company to order a selling orbuying of a stock under his or her own decision. When a stock holderintends to order a selling or buying of stock, he or she visits asecurities company in person, calls the company, uses a radiocommunication terminal provided by the company, utilizes a personalcomputer communication network system or uses an internet.

[0006] Now, recent stock trade method at a stock exchange market (SEM)and some of the terminologies in relation to stock trade are brieflydescribed using the example of Korea Stock Exchange (KSE).

[0007] As of February 1999, a stock price is based on a closing of aprevious day and can rise or fall within a range of 15% thereof. The KSEopens at 9 in the morning during workdays except for holidays, weekendand yearend, and closes at 3 in the afternoon. A “daily upper limit” inthe stock dealing means a price 15% soared above the closing price ofthe previous day and a “daily lower limit” defines a price 15% declinedbased on the closing price of the previous day.

[0008] Purchase and sale of a stock are made from 9 a.m. when the stockmarket opens to 3 p.m., but orders for stock dealing can be reservedeven from 5 p.m. to before 9 a.m. the following day after the market isclosed in case a communication by computer, ARS, Internet and the likeare utilized.

[0009] Referring to FIG. 1, a buying and selling method of stocks afterorder thereto is given utilizing the communication by computer orInternet is described hereinafter.

[0010] A stock holder uses his or her computer system 10 to connect sameto a computer system 2 of a securities company the stock holder dealswith, and to confirm a balance of an account, residual quantity ofstocks, present price or closing price of his or her present stock. Thenwhen the stock holder orders a buying or a selling of a particularstock, the order is recorded in the computer system of the securitiescompany, which is then transferred to a computer system 30 of the KSEafter a usual procedure necessary for the sale and purchase of the stockdealings is processed in the securities company.

[0011] When the order of sale and purchase is received via a network 40from the securities company, the computer system 30 in the KSE comparesselling order price and quantity and buying order price and quantity andallows a purchase and sale to be concluded at a particular price.

[0012] Generally, this kind of buying and selling is repeated fromopening to closing of the stock market. This kind of method is similarlyperformed when the stock holder visits the securities company. Onlydifference is that a step is deleted where a stock holder utilizes hisor her computer system 10 to input a particular data.

[0013] In order to contract this kind of deals, whether the deal is apurchase order or a sale order, an item code of a stock to be bought orsold, desired purchasing or selling price, desired purchasing or sellingquantity and the like should be input via a computer or ARS by a stockholder or a staff at the securities company.

[0014] Under the stock dealing method thus described, a predeterminedfundamental information data (by way of example, stock account, secretnumber, etc) and buying/selling condition information data (by way ofexample, stock item code, desired buying/selling prices, desiredbuying/selling quantity, etc) should be input via the computer system 10or 20 by a stock holder or staff at the securities company at everydealing time point. Furthermore, in order to place a buying or sellingorder corresponding to a particular purchase or sale, buying or sellingcontract details at every moment should be monitored and an ordercorresponding thereto should be timely placed.

[0015] However, there is a problem in these types of behaviors in thatlots of time are consumed and people who are busy at offices and who canhardly spend time at securities company cannot cope therewith.

[0016] There is another problem in that staff at the securities companyspend too much time in placing every buying or selling order, in theview point of the securities company, too much personal expenses arespent, and if there is any erroneous input of necessary information datadue to erroneous typing and the like, the securities company iscompelled to sustain a large amount of economic loss.

[0017] Meanwhile, many stock investors are thinking about provisionaldesired purchase price, purchase quantity, desired selling price andselling quantity of particular stock in which they intend to invest.However, in order to comprehend whether the current price of the stockhas reached a desired purchase or selling price, they should be alwaysaware of the stock price change at the stock market. However, it is notthat easy to constantly observe the changing stock prices.

SUMMARY OF THE INVENTION

[0018] The present invention is disclosed to solve the aforementionedproblems and it is an object of the present invention to provide anautomatic ordering method and system for allowing an investor to investwithout concerning himself or herself about stock market change and newinformation.

[0019] The present invention also provide an automatic ordering methodand system adapted to repeatedly place purchase and selling ordersaccording to predetermined conditions on behalf of investors includingindividual investors and institutional investors.

[0020] In accordance with one object of the present invention there isprovided an automatic ordering method, the automatic ordering method fortrading of stocks, bonds, items, futures, options, indexes, foreigncurrencies and the like through data communication network comprises thesteps of:

[0021] determining a trade-desired object and inputting an automatictrade condition containing purchase and selling conditions in a computersystem;

[0022] issuing purchase and/or selling order(s) according to theautomatic trade conditions through the data communication network;

[0023] discriminating whether the purchase order and/or selling orderhas been contracted through the data communication network; and

[0024] placing new purchase and/or selling order(s) by the computerthrough the data communication network according to the automatic tradeconditions when either the purchase order or the selling order iscontracted.

[0025] In accordance with another object of the present invention, thereis provided an automatic stock ordering method using a computer systemconnected to a data communication network, the method comprising thesteps of:

[0026] determining a trade-desired stock and inputting an automatictrade condition including purchase and selling conditions at thecomputer system;

[0027] placing through the data communication network a stock purchaseorder or stock selling order according to the trade condition;

[0028] discriminating whether or not the stock selling order or stockpurchase order has been contracted through the data communicationnetwork; and

[0029] placing by a commuter through the data communication network anew stock selling or purchase order according to the automatic tradecondition when the stock selling or purchase order is contracted.

[0030] In accordance with still another object of the present invention,there is provided an automatic stock ordering method, the method oftrading stocks using a computer system connected to data communicationnetwork, the method comprising the steps of:

[0031] determining a trade-desired stock and inputting an automatictrade condition including a purchase condition and a selling conditionin the computer system;

[0032] placing through the data communication network one or more thanone stock selling order(s) and one or more than one stock purchaseorder(s) according to the trade condition;

[0033] discriminating whether or not the stock selling or purchase orderhas been contracted through the data communication network; and

[0034] placing by the computer through the data communication networknew stock selling and purchase orders according to the automatic stocktrade condition when the stock selling or purchase order is contracted.

[0035] In accordance with still further object of the present invention,there is provided an automatic ordering system of stocks, the stockordering system including a user computer system connectable to acomputer system at the Korea Stock Exchange through a data communicationnetwork, the system comprising:

[0036] a user interface at the user computer system;

[0037] a memory device for storing a basic information data includingitem code of stock and account number of a stock holder input to thecomputer system through the user interface;

[0038] a trade condition control module for storing automatic stocktrade condition data containing desired selling price, desired sellingquantity, desired purchase price, desired purchase quantity for trade ofthe stock input to the computer system through the user interface; and

[0039] a trade order control module for discriminating whether theautomatic stock trade condition has been met and for placing a stocktrade order according to the automatic stock trade condition through thedata communication network if the condition is met.

BRIEF DESCRIPTION OF THE DRAWINGS

[0040] For fuller understanding of the nature and objects of theinvention, reference should be made to the following detaileddescription taken in conjunction with the accompanying drawings inwhich:

[0041]FIG. 1 is a conceptual drawing of a stock dealing system via anetwork;

[0042]FIG. 2 is a conceptual block diagram for illustrating anembodiment of an automatic ordering system of stock dealings accordingto the present invention;

[0043]FIG. 3 is a flow chart for illustrating the first and the secondembodiments of an automatic ordering method of stock dealings accordingto the present invention;

[0044]FIG. 4 is a user interface for illustrating the first and thesecond embodiments of an automatic ordering method of stock dealingsaccording to the present invention;

[0045]FIG. 5 is a flow chart for illustrating the third and the fourthembodiments of an automatic ordering method and system of stock dealingsaccording to the present invention;

[0046]FIG. 6 is a user interface for illustrating the third and thefourth embodiments of an automatic ordering method and system of stockdealings according to the present invention; and

[0047]FIG. 7 is an automatic trade table generated by the third and thefourth embodiments according to the present invention.

DETAILED DESCRIPTION OF THE INVENTION

[0048] Preferred embodiments of the present invention will now bedescribed in detail with reference to the accompanying drawings.

[0049]FIG. 2 is a conceptual block diagram for illustrating a firstembodiment of an automatic ordering system of stock dealings or stocktrade according to the present invention. In other words, an automaticordering system of stock dealing according to the present invention(hereinafter referred to an “automatic ordering system”) can beembodied, as illustrated in FIG. 1, by user computer system 10(hereinafter referred to as “user's computer”), a computer system ofsecurities company 20 and a computer system of SEM 30 mutually connectedfor performing data communication via a network 40.

[0050] Furthermore, the user computer 10, where an automatic orderingsystem according to the present invention can be embodied, includes auser interface 12 for interfacing with a stock holder, a trade (deal)condition control module 16 for storing information on a stock holder(by way of example, name, quantity, and purchasing price of possessedstock, and available balance and automatic trade conditions establishedby the stock holder and for revising to a new stock dealing conditionaccording to user manipulation or concluded deal state, and a tradeorder control module 14 for issuing a dealing order of concerned stockaccording to the automatic trade conditions.

[0051] Of course, the user computer 10, although not illustrated in FIG.2, further includes softwares such as operation system necessary foroperation of the computer system and various applications and hardwaressuch as central processing unit and hard disks. The user computer stillfurther includes hardwares (not shown) such as a modem, a LAN adapterfor executing a data communication with the computer system 20 at asecurities company or with the computer system 30 at the SEM andsoftwares such as data communication control application and the like,and all these are generally called as a communication control module(not shown).

[0052] The computer system 20 at the securities company, connected tothe user computer 10 via the network 40 in order to perform a datacommunication, includes an administrator's interface 22 for interfacingwith an administrator of the securities company, a deal (trade)performing module 24 for receiving an order from the user computer 10and transmitting same to the computer system 30 at SEM to thereby allowa stock dealing to be concluded, and an account control module 26 forstoring a useable balance and stock residual quantity of stock accountof a particular stock holder and for amending same according tocontracted dealings.

[0053] It should be also noted that the computer system 20 at thesecurities company is further disposed with hardwares and softwares forexecuting a general function as a computer system, quite similar tothose of the user computer 10.

[0054] Part or whole of modules 14 and 16 of the user computer 10 may beintegrated to a computer system 20 of a securities company. Constructionmay be made such that a user is simply connected to a company of asecurities company through the user interface 12. Furthermore, in acountry where it is legally allowed for a user to directly connect to acomputer system 30 of a stock market in placing a stock trade order, thecomputer system 20 of a securities company may be integrated to the usercomputer 10.

[0055] In case a securities company invests in a stock on behalf of aclient, hardward and software resources of the user computer 10 areintegrated to the computer system 20 of the securities company.

[0056] Next, the computer system 30 at the SEM is provided with anadministrator interface 32 for interfacing an administrator of the SEM,a deal (trade) conclusion control module 34 for receiving and comparinga purchase order and a selling order from each computer system 20 atevery securities company to thereafter conclude the dealings and a stockprice control module 36 for correcting the stock price according to theconcluded stock quantity and price. The computer system 30 at the SEMfurther includes softwares and hardwares for performing a generalfunction as a computer system, quite similar to those of the usercomputer 10 or computer system 20 at the securities company.

[0057] Each module illustrated in FIG. 2 performs a mutual datacommunication within a computer system each module belongs to, and adata communication is executed via the data communication control moduleeven among the modules included in other computer systems. Data flow andconnecting relation according to performance of these data communicationare schematically illustrated by two-way arrows in FIG. 2. Although FIG.2 illustrates a block diagram where the user computer 10 is directlyconnected to the computer system 30 of the SEM, it should be noted thatthe direct connection is not indispensable but the user computer 10 maybe connected only to the computer system 20 of the securities company.Hardwares and softwares for accomplishing the data communication arewell known to a person who has ordinary knowledge in a technical fieldto which the present invention belongs (hereinafter referred to as “aperson skilled in the art”), and detailed description of the hardwaresand softwares will not be made here as they are not directly necessarymatters in describing subject matters of the present invention.

[0058] It is an easy matter for a person in the art to adequatelyarrange or change computer system resources between the user computer10, computer system 20 of a securities company and computer system 30 ofKSE. Accordingly, it should be noted that FIG. 2 is just shown forillustrating one embodiment and a system for embodying the presentinvention may be variably modified by a person in the art.

[0059] Next, embodiments of the automatic stock ordering method andsystem will be described in detail with reference to FIGS. 3, 4, 5, 6and 7.

[0060]FIG. 3 is a flow chart for illustrating a first embodiment ofautomatic ordering method according to the present invention.

[0061] According to the first embodiment, when the automatic orderingsystem starts operation, step 300, a basic data including a stockaccount number, a secret number thereof, name and registration number ofstock holder, item code of possessed stock and the like are registeredthrough the user interface 12 of the user computer 10 and are stored. Aone-time registration of the basic information data suffices at theinitial start of the automatic ordering system and there is no need ofadditional registration unless the basic information data is to beamended.

[0062] Next, the stock holder establishes an automatic trade conditionfor selling and purchasing certain items of stocks, step 302. A userinterface as shown in FIG. 4 may be provided to the user to expedite theestablishment of the automatic trade condition.

[0063] A item code selection button 401 in FIG. 4 is selectivelyprovided to search or select a share to invest in. In order to select astock of ABC company 403 as investment item, an item code of the ABCcompany 403, by way of example, ‘00660’ 402 may be selected or input. Areferral button 404 of share price of previous day may be selectivelyprovided. An amount to be used for automatic trade is entered in anamount entry column 405. The entry amount should not necessarily accordwith remainder in the stock account. When there remains possessed stocksto be automatically traded, the number of stocks to be automaticallytraded are entered in a column 406. The number of stocks entered intothe column 406 should not be necessarily the whole possessed stocks.

[0064] Establishment of initial trade condition is not part of thepresent invention. The initial trade condition is the same as the methodand system provided for cyber stock investors by the current securitiescompanies. A referral button 407 of current share price is a selectiveitem. Column 408 is a button for selecting purchase or selling. Thepresent example has established an initial trade where 100 shares 410 ofABC company are purchased 408 at 25,000 Korean Won per share.

[0065] The automatic trade condition is based on a presumption that aninitial trade will be contracted. In order to set up an automatic tradecondition, columns 412 and 422 for selecting selling or purchase,columns 414, 418, 424 and 428 for selecting unit price and quantity atfixed quantity or fixed rate, and columns 416, 420, 426 and 430 forentering the unit price or quantity at fixed quantity or fixed rate areprovided.

[0066] The present example as a first automatic trade condition hasestablished a selling 412 of 100 shares 420 purchased at the initialtrade at 27,000 Won per share.

[0067] A second automatic trade condition based on the contract of thefirst condition is established at purchase 422 more increased inquantity 428 and 430 by 200% and lower unit prices 424 and 426 by 20%than those of the first trade. In other words, the condition is buying200 stocks at 21,600 Won per share.

[0068] These kinds of automatic trade conditions may be established upto an appropriate number, by way of example, up to a fifth condition orup to a tenth condition, in the same method. The automatic tradecondition is confirmed by pressing a confirmation button 432. However,the automatic trade condition is allowed to be changed or amended at alltimes by a user.

[0069] A selling order according to the predetermined first condition isgenerated by computer regardless of the current share price right afterthe initial trade is contracted. In other words, a discrimination ismade at step 306 in FIG. 3 as to whether the automatic trade conditionis a purchase or a selling, and if the condition is established asselling as illustrated in FIG. 4, flow advances to step 310 todiscriminate whether the selling condition has been met. Thediscrimination of the selling condition is a discrimination as towhether established selling quantity of share is possessed, or whether adesignated selling price is within an allowable trade range (i.e., dailyupper limit and daily lower limit).

[0070] If the condition is met, a selling order is automaticallygenerated by computer, step 316, and the computer discriminates whetherthe selling order is contracted, step 318.

[0071] If the selling order is not contracted on the same day, sameorder is generated by computer every day until the selling order isconcluded. If the order is contracted, the account remainder and shareresidual quantity are amended, step 320, and the computer discriminateswhether or not the condition is met according to the previously set-upsecond automatic trade condition. If the second condition is met, a neworder is immediately generated. In other words, as soon as the first atrade is concluded, a second trade order is actually created. A stocktrade order is automatically generated by the computer as much as theautomatic trade condition is established according to this method. Whenthe established automatic trade conditions are all concluded, automatictrade is stopped. In the present invention, completion of the automatictrade is advised to a user by an appropriate method. This method mayinclude beeper, E-mail, cellular telephone or the like. This notifyingmethod can be realized by well-know technologies.

[0072] The first embodiment includes a step 304 for receiving theclosing price of previous day and a step 312 for notifying an error whenthe purchase or selling condition is not met at steps 308 and 310.

[0073] A discrimination should be made as to whether established tradeprice is within the daily upper limit or daily lower limit when thestock trade order is placed only within the limits as in Korea, and ifthe order is placed out of the limits, errors 312 are created.Furthermore, in case only partial quantity of trade order is concluded,or trade is fulfilled at a price different from trade order price(Handling of this case will be described later), an instance can occurwhere account remainder and stock residual quantity remain againstanticipation to thereby generate an error.

[0074] If an error happens, the automatic trade is stopped andgeneration of error is advised to a user by an appropriate method. Whenthe error is notified, the user may change or amend the automatic tradecondition to thereafter process the automatic trade continuously.

[0075] According to the first embodiment, it is possible for the user toperform the trade of shares as desired without continuously monitoringchanges of the stock market.

[0076] Step 304 in FIG. 3 at the second embodiment of the presentinvention includes a step for receiving the closing price of theprevious day and the present price of concerned stock as well forcomparison with the automatic trade condition. There is a disadvantagein the first embodiment in that, when a stock trade order is createdregardless of the current price or invested money is too much, aninvestment strategy may be exposed to other investors. The secondembodiment therefore makes the stock purchase order or selling ordergenerated when the present price at the stock market reaches anestablished price of established automatic trade condition, or makes thestock selling order created when the present price is lower by apredetermined percentage (by way of example, 5%) than establishedautomatic selling price, or makes the stock purchase order created whenthe current price is higher by a predetermined percentage (by way ofexample, 4%) than established automatic purchase price.

[0077] The second embodiment can be embodied by additionally providingat the automatic trade condition establishment column of FIG. 4 anestablishment column for limiting a generated period of time of thetrade order, and by comparing the current price with trade ordergeneration time condition established at steps 308 and 310 in FIG. 3.Under these circumstances, if the time condition is not met, steps 308and 310 should be continuously checked until the time condition issatisfied without creating an error 312. The time condition comparisonmeans according to the second embodiment may be utilized by a known artto integrate a trade order control module 14 and a trade conditioncontrol module 16 in FIG. 2.

[0078] Now, a third embodiment of the present invention will bedescribed with reference to FIGS. 5, 6 and 7. At though the first andsecond embodiments is characterized in that either the purchase order orselling order is automatically created according to establishedautomatic trade condition, the third embodiment of the present inventionis characterized in that both the purchase order and selling order aresimultaneously generated according to the established automatic tradeconditions as described later.

[0079] As illustrated in FIG. 5, a system is activated, step 500,according to the third embodiment to set up an automatic tradecondition, step 502.

[0080] The automatic trade condition may be established by providing aninterface to a user as exemplified in FIG. 6. Remaining portions exceptthe automatic trade condition set-up unit in FIG. 6 are the same asthose indicated in reference numerals 401 through 410 in FIG. 4.

[0081] However, in the present embodiment, an example is given aspossessing 10,000 shares of DEF company and selling 100 shares of DEFcompany at 10,000 Won per share.

[0082] A standard quantity 602 in the automatic trade conditionestablishes a standard selling and purchase at every automatic trade.Fee rates (and tax) of securities company to be paid at the sharetrading are entered into a column 604, which is not essential butconducive to calculation of profits after the stock trading. Purchaseprice and selling quantity of automatic trade are established at columns606, 608, 610 and 612. The purchase price may be established at apredetermined lower price or at a predetermined lower rate than theselling price at every trading.

[0083] An automatic purchase price lower by 500W on than the sellingprice is established at every trading in FIG. 6.

[0084] Furthermore, automatic purchase quantity may be established at afixed rate or at a fixed quantity in column 610. If the column 612 isblank, the automatic purchase order at every trading is 100 shares asthe set-up standard quantity 602. Plus(+) and minus(−) symbols may beused in column 612, and in case of using plus(+), the automatic purchaseorder quantity is increased by a fixed rate or fixed quantity, and incase of using minus(−), the automatic purchase order quantity isdecreased by a fixed rate or by fixed quantity.

[0085] The automatic selling condition is also set up in columns 614,616, 618 and 620 in the same manner as above. The present embodiment isestablished as automatically selling 100 shares at a price moreincreased or more decreased by 1,000 Won than the initial selling priceat every trading. An extra trade condition may be established at a fixedrate or at a fixed quantity in columns 622 and 624. The extra tradecondition will be further described later.

[0086] The user may establish a target profit or earning rate at column626. If the target profit rate is not set-up, the automatic tradingcontinues unless stopped by the user. However, it is easy for thecomputer to calculate an earning rate at every automatic trading, and itis preferable to automatically stop the automatic trading when a certainprofit rate is earned.

[0087] The user may use a trade table application button 628 to draw upan automatic trade table as shown in FIG. 7. However, the automatictrade table can be imaginary, so that make-up of visual table isselective. In other words, the system according to the present inventioncan realize the third embodiment of the present invention just bystoring a formula or logic for drawing up the automatic trade table 700.

[0088] The automatic trade table 700 in FIG. 7 is made according to theautomatic trade establishment condition in FIG. 6.

[0089] The automatic trade table 700 is made such that each sellingprice in selling row 714 is less by 1,000 Won at each line thereof whileeach purchase price at each purchase row 712 is less by 500 Won thaneach corresponding line of selling price.

[0090] On the automatic trade table 700, prices in the same lines as in702 through 710 are appropriately adjusted up and down on the basis ofthe initial trade price.

[0091] Unlike the example in FIG. 6, in case the trade condition isdetermined at a fixed rate of percentage, purchase price or sellingprice of the trade table or order quantity may be created in decimalpoints. However, the KSE has stipulated that shares should be traded ona 50 Won unit base in case a share price is ranged between 10,000 Won to50,000 Won, to thereby limit units of trade price and quantity, and ifthe stipulation cannot be observed, share price is changed to anapproximate one or rounded to amend the trade table.

[0092] In most of cases, the trade table is adjusted to an approximateprice to cater to trade regulations of each country, which can beautomatically performed by computer, each column in the trade table isallowed to be amended in order quantity, selling price or purchase priceas a user desires. FIG. 7 is an example not amended or changed. Thetrade table 700 is confirmed by a trade table confirmation button 716pressed by a user.

[0093] With reference to FIG. 5, as soon as an initial selling succeeds,a first automatic purchase order and automatic selling order are createdby the automatic trade table according to the automatic trade conditionpreviously set up, step 512. In the third embodiment, it is designed “tobuy the same stock at a lower price and to sell at a higher price”.Accordingly, when an initial selling order is concluded, a purchaseorder at a price just below the contracted initial selling price (10,000Won) (i.e. purchase of 100 shares at a purchase price of 9,500 Won) isplaced (see line 706 in FIG. 7), and a selling order at a price justhigher than the contracted selling price (i.e. selling of 100 shares ata selling price of 11,000 Won) is placed (see selling column at line 704in FIG. 7).

[0094] These selling and purchase orders are within the account balanceand possessed number of shares, such that no errors are generated atsteps 506 and 508.

[0095] When a purchase order is contacted as ordered in a firstautomatic trade order, a purchase order and a selling order approximateto the order price contracted in the automatic trade table 700 aregenerated. As previously mentioned the third embodiment is so designedas to buy “at a lower price” than just-contracted price “and sell at ahigher price”, such that a second automatic trade order is createdthrough steps of FIG. 5 (steps 514, 516, 506 and 508) where a purchaseorder (100 shares purchased at 8,500 Won, see line 708 in FIG. 7) and aselling order (100 shares sold at 10,000 Won) are placed.

[0096] When a selling order is concluded at the second automatic tradeorder, a purchase order (100 shares bought at 9,500 Won) close tocontracted order price (10,000 Won at the second order) and a sellingorder (100 shares sold at 11,000 Won) are automatically generated at thethird automatic order. In order words, each automatic trade ordergenerates a purchase order at a price just lower than the contractedprice at the automatic trade table 700 and a selling order just higherthan the contracted price.

[0097] When an automatic trade is performed according to the thirdembodiment, a certain profit is created in case the share pricevertically fluctuate around a price range of the initial trade price. Byway of example, in case a share price in FIG. 7 rises from 10,000 Won to14,000 Won and drops to 10,000 Won, a predetermined earning isgenerated. Furthermore, even in case a share price drops from 10,000 Wonto 4,000 Won and rises to 10,000 Won, a certain profit is gained. Asapparent from this, the third embodiment may be an appropriateinvestment method for a stock where a share price thereof frequently andvertically fluctuates at a certain price range.

[0098] The extra trade condition in FIG. 6 may be established toincrease a selling quantity and purchase quantity in case an automatictrade is again generated at the same price after the automatic trade isinitiated, in other words, in case a purchase order and selling orderare twice generated at the same price according to fluctuation of theshare price.

[0099] Referring to FIG. 5 again, a discrimination is made as to whethera purchase condition and a selling condition are met by comparing theestablished automatic trade condition with balance of securities accountand possessed stocks, steps 506 and 508. In order to buy stocks, atleast more money should remain in the account than established purchasequantity multiplied by established purchase price, and in order to sell,at least more stocks are possessed than the desired selling quantity. Incase only purchase is continuously contracted by the automatic trade,possessed balance in the securities account may be drained out, and incase only selling is continuously concluded, a case may occur wherepossessed stocks are drained out.

[0100] In case steps 506 and 508 are met, the automatic trade purchaseorder and selling order are simultaneously generated, step 512, and incase the steps 506 and 508 are not satisfied, an error occurs, and theoccurrence of error is notified to the stock investor by an appropriatemethod, step 510.

[0101] By way of example, the occurrence of error may be so establishedthat an error message is displayed on the user interface or an alarmsound may be generated. Furthermore, a system may be so constructed asto notify to the stock investor by way of wire, wireless or pager whenan error happens. These kinds of error notifying methods may be realizedby known arts.

[0102] As mentioned above, in case steps 506 and 508 are satisfied,stock purchase order and stock selling order are created, step 512. Atthis time, it should be noted that the purchase order and selling orderare generated at the same time.

[0103] The third embodiment is quite different in this regard from theconventional stock investment method. In the third embodiment, thecurrent share price is disregarded and price change of stocks is notanticipated at all.

[0104] According to the third embodiment, a certain quantity ispurchased when a share price drops compared with previously bought shareprice and when the share price rises compared with the previouslypurchase share price, a certain quantity is sold.

[0105] A discrimination is made as to whether or not a trade iscontracted at step 514. The contracted trade order may be either aselling order or a purchase order, or neither order can be contracted.In case both orders are not contracted, same purchase order and sellingorder are created on the next day. Exceptional cases such as partialcontract, a contract with a price different from an order price and thelike may occur. In case of partial contract, whole order quantity may beconsidered as contracted, or a selling order and purchase order of thesame price for the stocks not contracted may be generated.

[0106] Furthermore, in case a contract is made at a price different fromthe order price, a purchase order just below a contracted price and aselling order just above the contracted price are created.

[0107] Whichever order is concluded, account balance and stockremainders are revised, step 516, and if condition is met according tothe automatic trade condition pre-set up at steps 506 and 508, a newpurchase order and a new selling order are immediately generated.

[0108] In the third embodiment, a closing price is received from thecomputer system 20 or the KSE computer system 30, step 504 to use sameas a discriminating reference of purchase condition and sellingcondition. In case ex-dividend or the like occurs, cases may occur wherereference price is different from the closing price of previous day.Furthermore, many exceptional circumstances such as reduction ofcapital, stock split, consolidation in par value and the like can happenin the stock market and when these cases happen, it is necessary toautomatically stop the automatic trade by way of system.

[0109] A fourth embodiment of the present invention is a variation ofthe third embodiment and is characterized in that at least two or morethan two purchase orders and at least two or more than two sellingorders are simultaneously created. In case there occur a large volume ofpurchase orders or selling orders in the stock market, trade orders invarious price ranges are concurrently concluded to rapidly and broadlychange the stock prices.

[0110] In case three selling orders and three purchase orders are set upto be simultaneously generated in the fourth embodiment, three sellingorders, each above 10,000 Won based on initial contract price of 10,000Won, (i.e., 100 shares sold, each at 11,000 Won, 100 shares sold, eachat 12,000 Won and 100 shares sold, each at 13,000 Won) and threepurchase orders, each below 10,000 Won of initial contract price (i.e.,100 shares bought, each at 9,500 Won, 100 shares bought, each at 8,500Won and 100 shares bought, each at 7,500 Won) are concurrently created,as in FIG. 7.

[0111] If any one of the six orders is contracted, balance of fiveorders is immediately cancelled the moment above one contract isconcluded, and as automatic trade orders thereafter, one purchase orderand one selling order corresponding to the contract in the thirdembodiment are created. The fourth embodiment is particularly useful toreserve orders before the stock market is open and after the stockmarket is closed. The fourth embodiment may be embodied by additionallyproviding a column for limiting the number of plural orders in theautomatic trade condition of FIG. 6.

[0112] The first, second, third and fourth embodiments according to thepresent invention are embodied by the system illustrated in FIGS. 1 and2. Information received from the computer system 30 of KSE or othercomputer (not shown) connected to Internet is compared with automatictrade condition priorly set up by a user according to the tradecondition control module 16 to discriminate whether or not purchasecondition and/or selling condition are/is satisfied. As a result of thediscrimination, if the condition(s) is(are) met, a selling order and/orpurchase order are(is) placed with the trade performing module 24 of thecomputer system 20 at the securities company according to the tradeorder control module 14.

[0113] This kind of discrimination and trade order is repeatedlyexecuted, with receipt of a market information on real time from theactivated start of automatic order system such that the trade orders areplaced several times in a day. Once the trade order is placed by thetrade order control module 14, the account control module 26discriminates whether account balance and remaining stocks are not outof limit, and the trade order is, once placed, transmitted to thecomputer system 30 of KSE by the trade performing module 24.

[0114] The trade conclusion control module 34 at the computer system ofKSE receives the order to compare same with trade order of othersecurities companies, and if an appropriate price is formed, the tradeis accomplished where the trade contract is notified to the tradeperforming module 24. The trade performing module 24 again notifies thecontracted price and quantity to the account control module 26 and thetrade condition control module 14, against which the account controlmodule 26 rectifies the balance and remaining quantity, where the tradecondition control module 14 separately stores the actually contractedtrade condition and amends the trade condition according to the userinstruction or set-up state.

[0115] Although the present invention has been described with referenceto specific embodiments, the invention is not intended to be limited tothe embodiments disclosed, which are considered to be purely exemplary.Although the above embodiment has described a desired purchase price,selling price and trade quantity as automatic trade condition of stocks,other conditions such as increase/decrease of composite share index,increase/decrease of stock trade volume, technical index and the likemay be established as automatic trade condition.

[0116] Furthermore, although the present invention has described aboutstocks, bonds, future, options, foreign current exchanges, grains,minerals, index swaps and the like which are traded in the similarmanner as stocks may be applied.

[0117] As apparent from the foregoing, there is an advantage in theautomatic ordering method and system for trading of stocks according tothe present invention thus described in that an investor can reduce lossof time consumed for monitoring stock market situation or for input oforders, while securities company can decrease time and cost forinputting and managing the trade orders.

[0118] There is another advantage in that a possibility of erroneouslyinputting data necessary for stock trade orders can be fundamentallyruled out to thereby prevent investment loss resulted from the erroneousinput.

What is claimed is:
 1. An automatic ordering method for trading ofstocks, bonds, items, futures, options, indexes, foreign currencies orthe like using a computer system connected to a data communicationnetwork, comprising: a) selecting a trade-desired object and inputtingan automatic trade condition containing purchase and selling conditionsin the computer system, the automatic trade condition comprising aselling price, a selling quantity, a purchase price and a purchasequantity; b) placing purchase and selling orders according to theautomatic trade condition through the data communication network; c)determining whether the purchase order or selling order has beencontracted through the data communication network; and d) placing newpurchase and selling orders at a new price by the computer through thedata communication network according to the automatic trade conditionwhen either the purchase order or the selling order is contractedaccording to step c). wherein step a) is executed by a user and stepsb), c), d) are executed without the intervention of the user, the newselling order price in step d) is higher than the contracted pricedetermined in step c), and the new purchase order price in step d) islower than the contracted price determined in step c).
 2. An automaticordering method, the method using a computer system connected to a datacommunication network, comprising: a) selecting a trade-desired stockand inputting an automatic trade condition including purchase andselling conditions at the computer system, the automatic trade conditioncomprising a selling price, a selling quantity, a purchase price and apurchase quantity; b) placing through the data communication network astock purchase order or a stock selling order according to the tradecondition; c) determining whether or not the stock selling order or astock purchase order has been contracted through the data communicationnetwork; and d) placing by a computer through the data communicationnetwork a new stock selling and purchase order at a new price accordingto the automatic trade condition when the stock selling or purchaseorder is contracted according to step c), wherein step a) is executed bya user and the steps b), c), d) are executed without the intervention ofthe user; the new selling order price in step d) is higher than thecontracted price determined in step c), and the new purchase order pricein step d) is lower than the contracted price determined in step c). 3.An automatic stock ordering method, the method of trading stocks using acomputer system connected to a data communication network, the methodcomprising: a) selecting a trade-desired stock and inputting anautomatic trade condition including a purchase condition and a sellingcondition in the computer system, the automatic trade conditioncomprises a selling price, a selling quantity, a purchase price and apurchase quantity; b) placing through the data communication network oneor more stock selling order(s) orders and one or more purchase order(s)according to the trade condition; c) determining whether or not thestock selling or purchase order has been contracted through the datacommunication network; and d) placing by the computer through the datacommunication network new stock selling and purchase orders at a newprice according to the automatic stock trade condition when the stockselling or purchase order is contracted according to step c), whereinstep a) is executed by a user and steps b), c), d) are executed withoutthe intervention of the user, the new selling order price in step d) ishigher than the contracted price determined in step c), and the newpurchase order price in step d) is lower than the contracted pricedetermined in step c).
 4. The method as defined in claim 3, wherein thestep of inputting the automatic ordering condition further comprises astep of drawing up an automatic trade table, where an automatic tradeorder is generated from the base of the automatic trade table.
 5. Themethod as defined in claim 3,wherein the automatic trade conditionincludes a target profit rate and further comprises a step ofcalculating a profit rate according to the automatic trading before acomputer places a new stock selling order and purchase order in case thestock selling order or a stock purchase order is concluded to thereaftercompare same with the target profit rate.
 6. The method as defined inclaim 3, wherein the automatic ordering condition further comprises anextra trade condition.
 7. The method as defined in claim 3, wherein stepb) further comprises a step of checking whether or not the tradecondition has been satisfied before placing an order, and notifying anerror notice to the user if the condition is not met.